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SME confidence declines further in Q4

K&H Bank's SME confidence index fell 10 points to -10 in Q4, falling for the second quarter in a row after climbing for a year and a half, the bank told MTI on Wednesday.

SMEs' pessimism regarding interest payments and taxes worsened and optimism about economic policy in Hungary waned. Businesses expect interest rates to rise a full 200bp, and the number of SMEs that believe taxes will rise now outnumber those that think they will fall. About 27% of SMEs gave a negative assessment of government measures in the past three months, but 40% still said the government would be business-friendly in the coming twelve months.

The sub-index for microbusinesses measured -17 in Q4, K&H Bank said.

K&H Bank prepared the survey with market research company GFK between November 29 and December 8, 2010. (MTI Econews)